The consortium led by San Miguel Holdings Corporation won the contract to rehabilitate the Ninoy Aquino International Airport (NAIA) with an estimated project cost of ₱170.6 billion, Finance Secretary Ralph G. Recto announced.

The SMC SAP & Co. Consortium edged out other strong bidders in the large project by offering a whopping 82.16 percent national government share in the proceeds of the project.

“This is certainly a welcome development for this long overdue project. NAIA has been operating beyond capacity for 9 years, leading to poor service and passenger inconvenience. The NAIA PPP project has been in the works for three decades, spanning six administrations. It has finally turned into a reality under the Marcos, Jr. administration,”  Recto said.

Recto said the SMC Holdings Corporation would work with other contractors on the project, including RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corporation to accomplish it on time.

He mentioned that the NAIA rehabilitation project would be the largest solicited Public-Private Partnership (PPP) project under President Ferdinand R. Marcos, Jr.

Recto emphasized that the solicited proposal to rehabilitate NAIA aimed to address the longstanding challenges of undercapacity, congestion, and underinvestment in the country’s main gateway.

A solicited proposal refers to projects identified by the implementing agency from the list of their priority projects, with the selection of the private proponent done through a public bidding process.

The Department of Finance’s (DOF) Privatization and Corporate Affairs Group (PCAG) was responsible for evaluating solicited and unsolicited PPP proposals, which underwent a rigorous screening process before being submitted to the Investment Coordination Committee (ICC) and the National Economic and Development Authority (NEDA) Board.

Recto noted that the project was evaluated within a record-breaking six weeks, marking the fastest approved PPP proposal in Philippine history.

Socioeconomic Secretary Arsenio Balisacan remarked that the transparent and competitive bidding process led to the awarding of the project to the winning bidder, the SMC-SAP & Company Consortium.

“[The] ₱170.6 billion project, which covers all facilities of the airport, including its runways, its four terminals, and associated facilities, addresses the NAIA’s longstanding issues such as inadequate terminal capacity and restricted aircraft movement,” Balisacan said.

Balisacan said the modernization drive aims to increase annual capacity from 35 to 62 million passengers and air traffic from 40 to 48 flights per hour.